Abu Dhabi-owned firm pushes ahead with expansion on back of construction rebound
Emirates Steel on Sunday said its production rose by 33 percent in the first nine months of this year as the Abu Dhabi government-owned firm pushes ahead with its expansion on the back a pick-up in construction activity.
Rebar production increased by 10 percent, wire rods by 4 percent, direct reduced iron was up by 20 percent and steel production increased by 33 percent over the same period last year, a statement from the company said. Actual production figures were not provided.
In September Emirates Steel said its phase two expansion had increased output to 3.5m tones per annum (mtpa) with plans to lift production to around 5.5 mtpa within the next three years.
Emirates Steel launched its two-phased, AED10bn (US$2.72bn) expansion in January 2006, completing Phase 1 in June 2009 at a cost of AED3bn (US$816m), which more than doubled its production capacity and made the it the largest steel plant in the United Arab Emirates.
The company sells 70 percent of its finished products in local markets, while the balance is being exported.
Construction projects in the Gulf will be the key driver supporting the steel industry's growth in the near term followed by oil and gas, Saeed Al Romaithi, CEO of Emirates Steel said.
"Although some stability is returning to the GCC's construction sector, we believe that infrastructure projects will accelerate the region's recovery over the next few years," he said.
Emirates Steel is owned by Seraat General Holding Company, which is wholly owned by Abu Dhabi Government.